— February 18, 2019
The finance industry is never predictable. It’s a world of topsides and downsides that affect global businesses in more ways than any other factor. With so many parameters around the world contributing to the financial waves, it’s really difficult for businesses to remain calm. They need to always stay prepared for financial risks. Businesses have resorted to several methodologies for solving this global financial enigma and have spent millions on separate financial departments to be able to steer the business through these financial potholes. But, things have remained sour.
That’s where AI is slowly turning out to be a useful weapon for the financial industry. Stakeholders, financial professionals, financial consultants, or business management consultant companies around the world, are gradually embracing AI to predict financial risks, guide clients to a sound strategy of financial resiliency, and drive better business success. To say that AI can be the only weapon to have a better understanding of the ever-volatile market place is no exaggeration. Here are the top reasons why Artificial Intelligence is now recommended by financial consultants for their clients:
Not so long ago, all financial decisions were made manually with the help of stacks of research files. Everything depended on the human intuition of financial professionals. It doesn’t need mentioning that financial activities were hence too cumbersome, error-prone, costing businesses huge amounts of money. But with the advent of AI and its family of technologies such as automation and Big Data, financial operations have seen a breath of fresh air. Redundant tasks need not be done manually, insights generation from records can also be automated with AI, and data-based decisions ease the stress and burden of financial stakeholders, professionals, consultants, and decision makers.
One of the biggest problems in financial operations is a lack of overall visibility on the hugely complex processes. Usually, a lot of manual operations in different segments make it highly difficult to have central monitoring. For financial businesses, their customers also lacked visibility in the overall process that created a further nuisance. Ultimately, this led to stagnant business growth and fragmented service.
The advent of AI has made things simpler. With machine learning technologies, people have more visibility on the entire process. Departmental works can progress on a smoother rate, and customers have a much better understanding and visibility of the financial processes such as trading, investment, and more.
Minimization of Risks
As mentioned beforehand, risks in the financial world are more than anywhere else. Seldom it makes sense to the common understanding as to why the stock or investment market, for example, is so volatile. The various ups and downs are unpredictable and this leads to faulty decision making that costs businesses on a gargantuan scale.
Machine Learning has come to the fore as the tool to predict these sudden changes and hence better comprehend as to what decisions can be taken to steer the business carefully in such scenarios. In many cases, manual errors have also resulted in deep consequences in trading industries. Financial analysts are rapidly embracing data-based decision making and machine learning algorithms to better understand the market, the challenges, and tackle or prevent future risks from the business perspective.